Stocks in Focus on November 2, 2023: ESSO and GULF

Kaohoon Online has selected stocks with a high-growth potential for investors to consider on November 2, 2023.


KGI Securities (KGI) gave an “Outperform” rating on Esso (Thailand) Public Company Limited (SET: ESSO) with a target price at ฿11.50/share.

KGI expected ESSO to report 3Q23F earnings of Bt4.4bn (recovering from net losses of Bt3.1bn in 3Q22 and Bt1.3bn in 2Q23). The significant improvement would be thanks to anticipated better market GRM of US$10.1/bbl (+124% YoY, +358% QoQ) and larger stock gain of Bt3.0bn (rebounding QoQ from stock losses in 3Q22 and 2Q23).

KGI reiterated a rating of Outperform on ESSO with a 1H24F target price of Bt11.50, based on 6.0x adjusted EV/EBITDA. KGI believed the share price will be supported by anticipated materially higher earnings in 3Q23F and high seasonal diesel demand in the upcoming winter. Bangchak Corporation (SET: BCP)’s management also reconfirmed it has no intention to delist ESSO from SET within a year after BCP acquired a further 10.36% stake in the company from the tender offer, leading to BCP currently holding a 76.35% stake.


Maybank Securities (Thailand) (MST) gave a “BUY” recommendation on Gulf Energy Development Public Company Limited (SET: GULF) with a target price at ฿56.25/share.

MST stated that the stock price has fallen since the end of August 2023, responding to concerns about measures to reduce electricity costs, rising gas costs, and accelerating US bond yields. However, most power plant structures are of the IPP-type, which will have a limited impact on operating results.

3Q23 profit trends will grow well QoQ and YoY, with wind power plants entering the season of SPP power plants with lower gas costs, and also recognizing profit sharing from power plants in the United States. Meanwhile, from 4Q23-4Q24, profits are expected to reach new highs for another 5 quarters from the gradual rollout of new COD projects.